ANSWERS: 3
  • I want to give him 15% of future advertising revenue. BUT, I DON'T want to partnership with him. Is there a name for this type of business venture? When you give someone 15% of your company's profits/losses? I want full control of the company, I want to have the power to dismiss him if something goes wrong in the future. The only thing he will be doing is collecting 15% of future profits in exchange for promotions. Let me know please, is there a name for this? or a title for this?
  • If you own the company, hire him as a contractor for 15% of profit for compensation. This way he doesn't share the loss except loss of job. The company could be a sole proprietorship or a company. This is done often. You can just not renew the contrct if you want to fire him.
  • Sure sounds like contractual commission-based employment to me. But remember, 15% of revenue is different than 15% of profits... MUCH different. I have no idea how you would structure it but you would probably have to pay him minimum wage and then if 15% of revenue is more than that on the period at which it is regularly measured (day, week, month, quarter) then you would pay him the balance at those times. But I'm not a lawyer. I just stayed at a Holiday Inn Express. Get a legal opinion on this if it's that important to you.

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